M&S chairman claims online grocery market is a desert of profit

In April 2025, Archie Norman, Chairman of Marks & Spencer (M&S), expressed his skepticism about the profitability of online grocery businesses. He noted that the sector has destroyed more wealth than any other industry he has encountered. While shareholders are not optimistic about its value, Norman believes it will become significant. This month marks the final installment of a £750 million joint venture payment. Norman has tackled M&S’s turnaround by making tough decisions rather than just focusing on superficial changes, addressing a culture within the company that has historically felt entitled to success without substantial effort. Despite reservations, Norman is looking at M&S’s loyalty programme, Sparks, as a means to gather data about customer preferences, intending to pivot M&S toward becoming Britain's most personalized retailer. In terms of operational efficiency, he is considering consolidating in-store cafes, reflecting a broader trend in the retail space where companies are looking to minimize costs while enhancing service offerings. Grocery markets are known for their low profit margins, necessitating drastic cost management strategies to remain competitive. Moreover, M&S has been adapting to changing retail landscapes and consumer expectations, leading to strategic discussions on product offerings, including the recent U.S. launch of Percy Pig in Target stores, aimed at expanding brand recognition and market presence in North America. Such pivots indicate M&S's awareness of globalization and the need for diversification to appeal to a wider audience. Ultimately, the ongoing challenges faced by M&S and the grocery sector at large illustrate the unpredictability and volatility of modern retail, as companies strive to avoid becoming obsolete in a rapidly evolving marketplace.